Selling a Business in California

Escalon Business Attorneys Lawyers, CA

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Selling a business after years of work can be very profitable. Many businesses are created with the hopes that they will one day be acquired by a larger firm. The process of selling your business can be complex, however. Federal and California laws over mergers, acquisitions, negotiations and securities exchanges may be important in the transaction.

How Do I Sell a Business?

Obviously, the initial step in selling a business is to either receive an offer or solicit one. In Escalon, purchase agents do more than simply find buyers. They also lend advice about which offers are worthwhile to consider. Preparing financial records to comply with California and Federal law is imperative and will help determine the proper value for the rights you are selling. As an agreement for the purchase is reached, typically a formal contract will be written. It is important to review such documents before they are signed so that all aspects of the agreement are presented properly.

What Will I Give Up in the Business?

The sale of a business is simply the transfer of a right known as "control". The party with control of a business directs its operations and may use the business property as it sees fit. The right of control can be separated easily from the business, and this often leads the buyers in Escalon to be less interested in other rights within the company. In fact, buyers regularly leave other rights, such as the right to future earnings, with the sellers so that they can acquire control more cheaply. Because of the wide variety of different concerns buyers may have, negotiations are essential. Each party should voice their intents and concerns during this process.

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How Can an Attorney Help?

The law in California places certain demands on parties who want to sell a business. Lawyers in Escalon are qualified to advise you in this process and ensure that the sale is in compliance with the law.

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